100% Financing - Primary Residential Mtg Inc

Making dreams come true
with zero down mortgages

We don’t think that saving for a down payment should be the reason you put your dreams on hold. We can help you buy your dream home with a zero down mortgage loan. You’ll not only be able to afford a home sooner, you’ll probably be able to afford more home. With a zero down mortgage, the amount of loan you can qualify for is determined by your ability to make your monthly payments rather than how large a down payment you’ve saved. And, for most buyers, this means qualifying for a larger loan. Many of the options that existed for 100% financing have been eliminated, but a few loans are still available, although you may need to think about the manner in which you acquire down payment assistance on the FHA and conforming options. Both VA and USDA Rural Housing programs still offer true 'zero down payment' programs.

The following list contains more detailed information on loan programs that may enable you to purchase your home with zero money out of pocket, or a low down payment;

1. FHA Loans

· FHA will lend up to 96.5% of the purchase price to the buyer

· The remaining 3.5% can be provided through funds from the buyer or in the form of a gift from a relative. The seller can pay up to 6% of the sales price amount as a credit toward the closing costs and prepaid expenses.

· Also, FHA makes allowances for past credit delinquency so long as no new derogatory credit is opened in the past 12months. Any older delinquency that is still open must be paid prior to the loan closing.

· Chapter 7 bankruptcy must be discharged for two years. Chapter 13 bankruptcy can be active, but the buyer must have twelve months of timely payments to the courts, as well as no new delinquency.

· Foreclosures must be discharged for three years from the sheriff sale date regardless of whether the foreclosure was included in the bankruptcy or not.

· A buyer can purchase up to a four-unit property with FHA as long as he or she occupies one unit as the primary residence. Additional conditions will apply on three and four-unit properties.

· FHA offers 30, 20, and 15-year fixed loans as well as 1,3,and 5-year adjustable rate mortgages at very competitive rates.

· An up-front mortgage insurance premium of 1.75% of the loan amount is added to the loan, along with a lower monthly mortgage insurance premium.

· The maximum loan amount that FHA will lend is determined by the county in which the property is located. For example, the maximum loan amount allowed in Montgomery County is $272,250.00.

2. VA loans

VA loans are very similar to FHA loans with a few exceptions;

· The prospective buyer must be a veteran or currently serving in the military. A DD-214 will be requested in order to determine the maximum loan amount that VA will lend to the buyer.

· VA will lend up to 100% of the purchase price. As with FHA, the closing costs can be paid by the buyer, seller, or in the form of a gift from a relative.

· VA performs in a similar manner in regard to credit criteria.

· Loan amounts are typically more generous with VA, and there is no set maximum per County as with FHA.

· VA also offers 30,20,and 15-year terms as well as 1,3, and 5-years adjustable rate mortgages.

· VA charges a 2.15% to3.3% funding fee that is added to the loan. The percentage is determined by the type of duty that was served by the buyer during his or her military tenure, and the number of times the VA eligibility for home purchase has been utilized.

If the borrower is a disabled veteran, and receives VA disability, the funding fee is waived.

Let us help you explore all your mortgage options. We look forward to helping you!

3. Conforming (Conventional) Loans

· These are loans that conform to Freddie Mac or Fannie Mae criteria.

· Loans are offered up to 95% of the purchase price, and the seller can pay closing costs between 2%, and up to 6% of the purchase price, depending on the program type.

· Mortgage insurance increases as the loan-to-value increases.

· The maximum loan amount for a single-family residence is $417,000.00.

· The buyer can purchase a 1-4 unit property under these programs. Loan amounts increase as the number of units increase. Down payment requirements are determined by the number of units. 30,20,and 15-year terms are available.

· Adjustable rates are also available.

If a downpayment is required, the down-payment required from the buyer must be verified in an account held by the buyer for at least 60 days. Gifts for down-payment are not allowed, unless at least 20% of the sales price is being gifted by the donor.

4. Homebuyer Assistance Programs

· Many programs exist to aid a prospective buyer in acquiring money for down-payment on a home.

· These programs are offered by city, county, state and federal institutions. The buyer will need to contact his or her local housing department to possibly obtain more information on these programs, or contact us.

FHA and VA allow these types of down-payment assistance

5. USDA Rural Housing Loans

USDA rural housing loans are a great alternative to traditional conventional financing. These loans provide for 100% of the purchase price, as well as up to 2% in additional funds to assist with closing costs and prepaid expenses.

This program is geared toward smaller cities and rural areas. Income and credit requirements exist, and an address is required to assure that the property falls in a USDA rural housing allowable area before initiating a purchase contract on the property. A one time guarantee fee of 2.00% is added to the loan amount, but there is no monthly mortgage insurance, which makes this a very attractive program. There is no minimum credit score required, but with a credit score of 620, fairly liberal credit history can be accepted. These loans also offer competitive interest rates to the buyer. Please contact us for further details on this program.